Language for Business Studies [antikvár]

1 COMMERCE - CHANNELS OF DISTRIBUTION During the process of marketing and distribution, merchandise usually passes through the hands of one or more intermediaries between the producer and the consumer. Commerce provides the important links between the producer and consumer. Commerce can be divided into two clear areas, trade and services to trade. • Trade is the process of changing ownership. Traders are the businesses directly involved in the buying and selhng of goods and services. Trade can either take place within a coimtry (home trade) or between countries (foreign trade). Home trade involves the activities of wholesalers and retailers. Foreign trade involves importers (who buy goods from other countries) and exporters (who sell goods to other countries). • Services to trade are the commercial activities that assist trade in the job of selling goods and services. The activities that provide these services are: 1. Banking - providing short-term finance and providing facilities for easy payment transfer. 2. Finance - various institutions (e.g. the Stock Exchange) providing long-term finance for industry, commerce and consumer credit. 3. Insurance - spreads the risks faced by industrial and commercial businesses. 4. Transport - engaged in the movement of commodities from one place to iinother. 5. Communications: a) Postal - transfer of written commimications through mail services. 7 ^^